What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Indiana conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Indiana conventional loan limits are the same thing as Indiana conforming loan limits.

Indiana Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Indiana are determined by:

  • Indiana Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Indiana are set at the floor amount of $424,100 across the entire state. Metro areas in IN with a conforming limit of $424,100 include Indianapolis, Gary, South Bend and Fort Wayne.

Search all Conventional Loan Limits in Indiana:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ADAMSDECATUR, IN$510,400$653,550$789,950$981,700
ALLENFORT WAYNE, IN$510,400$653,550$789,950$981,700
BARTHOLOMEWCOLUMBUS, IN$510,400$653,550$789,950$981,700
BENTONLAFAYETTE-WEST LAFAYETTE, IN$510,400$653,550$789,950$981,700
BLACKFORDNON-METRO$510,400$653,550$789,950$981,700
BOONEINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
BROWNINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
CARROLLLAFAYETTE-WEST LAFAYETTE, IN$510,400$653,550$789,950$981,700
CASSLOGANSPORT, IN$510,400$653,550$789,950$981,700
CLARKLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
CLAYTERRE HAUTE, IN$510,400$653,550$789,950$981,700
CLINTONFRANKFORT, IN$510,400$653,550$789,950$981,700
CRAWFORDNON-METRO$510,400$653,550$789,950$981,700
DAVIESSWASHINGTON, IN$510,400$653,550$789,950$981,700
DEARBORNCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
DECATURGREENSBURG, IN$510,400$653,550$789,950$981,700
DEKALBAUBURN, IN$510,400$653,550$789,950$981,700
DELAWAREMUNCIE, IN$510,400$653,550$789,950$981,700
DUBOISJASPER, IN$510,400$653,550$789,950$981,700
ELKHARTELKHART-GOSHEN, IN$510,400$653,550$789,950$981,700
FAYETTECONNERSVILLE, IN$510,400$653,550$789,950$981,700
FLOYDLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
FOUNTAINNON-METRO$510,400$653,550$789,950$981,700
FRANKLINCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
FULTONNON-METRO$510,400$653,550$789,950$981,700
GIBSONNON-METRO$510,400$653,550$789,950$981,700
GRANTMARION, IN$510,400$653,550$789,950$981,700
GREENENON-METRO$510,400$653,550$789,950$981,700
HAMILTONINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
HANCOCKINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
HARRISONLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
HENDRICKSINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
HENRYNEW CASTLE, IN$510,400$653,550$789,950$981,700
HOWARDKOKOMO, IN$510,400$653,550$789,950$981,700
HUNTINGTONHUNTINGTON, IN$510,400$653,550$789,950$981,700
JACKSONSEYMOUR, IN$510,400$653,550$789,950$981,700
JASPERCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$510,400$653,550$789,950$981,700
JAYNON-METRO$510,400$653,550$789,950$981,700
JEFFERSONMADISON, IN$510,400$653,550$789,950$981,700
JENNINGSNORTH VERNON, IN$510,400$653,550$789,950$981,700
JOHNSONINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
KNOXVINCENNES, IN$510,400$653,550$789,950$981,700
KOSCIUSKOWARSAW, IN$510,400$653,550$789,950$981,700
LAGRANGENON-METRO$510,400$653,550$789,950$981,700
LAKECHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$510,400$653,550$789,950$981,700
LAPORTEMICHIGAN CITY-LA PORTE, IN$510,400$653,550$789,950$981,700
LAWRENCEBEDFORD, IN$510,400$653,550$789,950$981,700
MADISONINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
MARIONINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
MARSHALLPLYMOUTH, IN$510,400$653,550$789,950$981,700
MARTINNON-METRO$510,400$653,550$789,950$981,700
MIAMIPERU, IN$510,400$653,550$789,950$981,700
MONROEBLOOMINGTON, IN$510,400$653,550$789,950$981,700
MONTGOMERYCRAWFORDSVILLE, IN$510,400$653,550$789,950$981,700
MORGANINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
NEWTONCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$510,400$653,550$789,950$981,700
NOBLEKENDALLVILLE, IN$510,400$653,550$789,950$981,700
OHIOCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
ORANGENON-METRO$510,400$653,550$789,950$981,700
OWENBLOOMINGTON, IN$510,400$653,550$789,950$981,700
PARKETERRE HAUTE, IN$510,400$653,550$789,950$981,700
PERRYNON-METRO$510,400$653,550$789,950$981,700
PIKEJASPER, IN$510,400$653,550$789,950$981,700
PORTERCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$510,400$653,550$789,950$981,700
POSEYEVANSVILLE, IN-KY$510,400$653,550$789,950$981,700
PULASKINON-METRO$510,400$653,550$789,950$981,700
PUTNAMINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
RANDOLPHNON-METRO$510,400$653,550$789,950$981,700
RIPLEYNON-METRO$510,400$653,550$789,950$981,700
RUSHNON-METRO$510,400$653,550$789,950$981,700
SCOTTSCOTTSBURG, IN$510,400$653,550$789,950$981,700
SHELBYINDIANAPOLIS-CARMEL-ANDERSON, IN$510,400$653,550$789,950$981,700
SPENCERNON-METRO$510,400$653,550$789,950$981,700
ST. JOSEPHSOUTH BEND-MISHAWAKA, IN-MI$510,400$653,550$789,950$981,700
STARKENON-METRO$510,400$653,550$789,950$981,700
STEUBENANGOLA, IN$510,400$653,550$789,950$981,700
SULLIVANTERRE HAUTE, IN$510,400$653,550$789,950$981,700
SWITZERLANDNON-METRO$510,400$653,550$789,950$981,700
TIPPECANOELAFAYETTE-WEST LAFAYETTE, IN$510,400$653,550$789,950$981,700
TIPTONNON-METRO$510,400$653,550$789,950$981,700
UNIONCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
VANDERBURGHEVANSVILLE, IN-KY$510,400$653,550$789,950$981,700
VERMILLIONTERRE HAUTE, IN$510,400$653,550$789,950$981,700
VIGOTERRE HAUTE, IN$510,400$653,550$789,950$981,700
WABASHWABASH, IN$510,400$653,550$789,950$981,700
WARRENLAFAYETTE-WEST LAFAYETTE, IN$510,400$653,550$789,950$981,700
WARRICKEVANSVILLE, IN-KY$510,400$653,550$789,950$981,700
WASHINGTONLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
WAYNERICHMOND, IN$510,400$653,550$789,950$981,700
WELLSNON-METRO$510,400$653,550$789,950$981,700
WHITENON-METRO$510,400$653,550$789,950$981,700
WHITLEYFORT WAYNE, IN$510,400$653,550$789,950$981,700

Indiana conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Indiana?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Indiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Indiana Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

IN Conforming Loan RequirementsConventional mortgage guidelines allow you to purchase
warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Indiana?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Indiana:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Indiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Indiana Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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